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On The Rise And Fall Of Microvast

Oct. 01, 2021 6:04 AM ETMicrovast Holdings, Inc. (MVST)18 Comments
Pacifica Yield profile picture
Pacifica Yield


  • Microvast has seen its stock price fall by just over 67% from its 2021 peak.
  • The company has revised its revenue guidance downward from the initial number provided when its merger with Tuscan was announced.
  • With cash of $700 million raised from the merger, the company holds ample liquidity to capitalize on the great electrification wave.

Electric Car Battery Pack
kool99/iStock via Getty Images

Microvast (NASDAQ:MVST) was once flying high on strong electric vehicle euphoria. The company's stock price was trading close to $25 and enthusiasm was building around its first US factory, the partnership with Oshkosh (

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Pacifica Yield profile picture
The equity market is an incredibly powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, and green energy firms. By Leo Imasuen

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MVST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (18)

Duago profile picture
When short interest is so high, big boys usually have a reason. Sometimes a good reason as have been pointed out in this article.
I’m fully onboard this train.
@Dwight50 - MVST certainly has a lot of potential with the huge EV revolution. It'd something if they developed a new and improved batteries... solid state?
Thia is a screaming buy - provided we get contracts done with Oshkosh, USPS,BMW and so on...as already predicted. Once these contracts are published and discussed in media we will see share prices higher than 12 or 15 bucks. The short rate is tremendously high...an explosion could easily occur
@Airtrafficcontroller - are there any indications or information about these potential contracts or just wishes and hopes?
Mvst is building batteries in Germany too, directly near to Teslas Berlin Grünheide Gigafactory! Tesla could buy MVST whole German factory! The author of this articel does not mention
This is pure BUY at this price. Battery technology is the future and next 10 years the world will expands with EVs all over everyone n everything. So keep buying at this price
astuteinv1 profile picture
How many of the 48MM shares in the pipe do you think will be sold? They filed the S-1A 09-24-21 so it could be effective any day and they will be free to sell.
@astuteinv1 they already dumped thats why stock is new ATL
I see it as a Screaming buy myself anything under $10 and have been adding alot,they're just a PR away from potentially making a Huge move up,Companies Future has never looked so bright looking forward imo
@TheeSoluution Agree. If one looks at the big picture, being a competitive company in a rapidly expanding market, and having many contracts already in place, their terminal cash flows are going to be massive. You really have to look at 2024-2025 and find a cheap entry point (such as now). The fact that it will take this company a while to become profitable is not a big deal.
@philzhou.com the autho forgot to mention that the cash/share is at aprox $2,30. furthermore MVST is not only operating in china and the US, they are building battery in Germany directly near to Tesla Berlin Grünheide!
javings profile picture
Appreciate the update LI. The company may have a huge TAM, but implementing their strategy is going to take time, and given its current MC, there is more immediate downside, in a falling market. Would add to my current position on a correction, but not at today's price.
@javings 20% Discount to The merger. 700 Mio of the Market Cap ist Cash. So the revenue comparison marketcap vs. Revenue ist not a good KPI for the real value of MVST.
javings profile picture
@tmarcel You raise a good point about cash balances. However, a 20% discount to to the merger is not a relevant metric anymore. IMO, in the near and medium time frame, it is cost escalation along supply lines, cost control, and deliveries that will count.
@javings true Points. But Most Important is revenue or Market Share because this is a Long Term Stock in my eyes. Story is really good.
Mvst is a buy here
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